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What Happens To The MAGA ETF If Trump Loses The Presidential Election?

Chris Katje
·2 min read

If incumbent GOP President Donald Trump loses the election, a question arises: what happens to an ETF named after his campaign motto that's calculated based on donations to the Republican Party?

About The MAGA ETF: The Point Bridge GOP Stock Tracker ETF (BATS: MAGA) tracks donations by S&P 500 companies to the Republican Party and holds around 150 companies with the largest amount.

The fund's ticker symbol refers to Trump’s campaign promise to “make America great again.”

The ETF has $8.6 million in assets under management. The ETF started trading in September 2017.

What Happens To MAGA If Trump Loses? Hal Lambert, the man behind the MAGA ETF, told CNN he will be voting for Trump. If Trump loses, the ETF will continue and even keep the MAGA symbol, he said. 

“The goal for this ETF was to have something for conservatives to invest in that hasn’t been out there," he said.

Lambert said he would not rule out creating a Democrat-based ETF that could be called "Blue Wave ETF," focusing on companies donating to the Democratic Party.

A Biden win could be good for the MAGA ETF, as disgruntled Republicans might invest more in it, Lambert said.

Poor Performance For MAGA: The Point Bridge GOP Stock Tracker ETF is down 6% in 2020, compared to a 7% gain for the SPDR S&P 500 Trust ETF (NYSE: SPY).

The MAGA ETF is up 6% over the last three years versus a 42% gain for the S&P 500.

The Point Bridge GOP Stock Tracker ETF has trailed the market and is missing a large number of the technology stocks in the S&P 500. Technology has been one of the best-performing sectors, and since the industry typically donates more to Democrats, the MAGA ETF has missed out on sector gains.

Potential ETF Winners: The MAGA ETF might not be the ideal way to play a Trump win and could see a decline if Biden is elected.

The ETF includes stocks based on political donations instead of sectors that Trump may favor or help boost in the future.

The PowerShares Aerospace & Defense ETF (NYSE: PPA) could be a better way to play a Trump win, with Trump supporting large defense spending.

Among the ETFs that could get a boost from a Biden presidency: the iShares MSCI China ETF (NASDAQ: MCHI), Global Infrastructure Development ETF (BATS: PAVE) and the Invesco Solar ETF (NYSE: TAN).

Photo credit: Gage Skidmore, Flickr

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